{"id":16388,"date":"2016-01-12T16:06:05","date_gmt":"2016-01-12T21:06:05","guid":{"rendered":"http:\/\/olduvai.ca\/?p=16388"},"modified":"2016-01-12T16:06:05","modified_gmt":"2016-01-12T21:06:05","slug":"chinese-shipyards-vanish-as-baltic-dry-collapses-to-new-record-low","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=16388","title":{"rendered":"Chinese Shipyards “Vanish” As Baltic Dry Collapses To New Record Low"},"content":{"rendered":"

Chinese Shipyards “Vanish” As Baltic Dry Collapses To New Record Low<\/a><\/h3>\n
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Another day, another plunge in The\u00a0Baltic Dry Index, which just dropped a further 3.1% to 402 today – a new record low<\/strong>. While the index is driving headlines, under the surface, reality in the shipping (and shipbuilding) industry is a disaster. Total\u00a0orders at Chinese shipyards tumbled 59% in the first 11 months of 2015<\/strong>, and as\u00a0Bloomberg reports<\/a>, with bulk ships accounting for 41.6% of Chinese shipyards\u2019 $26.6 billion orderbook as of December, there is notably more pain to come, as one analyst warns\u00a0“Chinese shipbuilders won\u2019t be able to revive even if you try breathing some life into them.”<\/strong><\/em><\/p>\n

Baltic Dry Bloodbath…<\/strong><\/u><\/p>\n

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About 140 yards in the world\u2019s second-biggest shipbuilding nation have gone out of business since 2010,<\/strong>\u00a0and more are expected to close in the next two years after\u00a0only 69 won orders for vessels last year,<\/strong><\/u>\u00a0JPMorgan Chase & Co. analysts Sokje Lee and Minsung Lee wrote in a Jan. 6 report. That compares with 126 shipyards that fielded orders in 2014 and 147 in 2013.<\/p>\n

As Bloomberg reports,\u00a0<\/em><\/a>the weakening yuan and China\u2019s waning appetite for raw materials have come around to bite the country\u2019s shipbuilders, raising the odds that more shipyards will soon be shuttered.<\/p>\n

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\u201cThe chance of orders being canceled at Chinese yards is becoming greater and greater,\u201d<\/strong>\u00a0said Park Moo Hyun, an analyst at Hana Daetoo Securities Co. in Seoul.<\/div>\n

\u201cWhile a weaker yuan could mean cheaper ship prices for customers, it still won\u2019t be enough to lure back any buyers. Chinese shipbuilders won\u2019t be able to revive even if you try breathing some life into them.\u201d<\/strong><\/u><\/p><\/blockquote>\n

And it is not going to get better anytime soon…<\/p>\n

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Bulk ships accounted for 41.6 percent of Chinese shipyards\u2019 $26.6 billion orderbook as of Dec. 1,<\/strong>\u00a0according to Clarkson Plc, the world\u2019s largest shipbroker.<\/div>\n<\/blockquote>\n
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…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Chinese Shipyards “Vanish” As Baltic Dry Collapses To New Record Low Another day, another plunge in The\u00a0Baltic Dry Index, which just dropped a further 3.1% to 402 today – a new record low. While the index is driving headlines, under the surface, reality in the shipping (and shipbuilding) industry is a disaster. Total\u00a0orders at Chinese […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[3594,130,7076,948,1031,4318],"class_list":["post-16388","post","type-post","status-publish","format-standard","hentry","category-economics","tag-baltic-dry-index","tag-china","tag-headlines","tag-jp-morgan-chase","tag-yuan","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16388","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16388"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16388\/revisions"}],"predecessor-version":[{"id":16389,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16388\/revisions\/16389"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16388"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16388"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16388"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}